The leader multipurpose shopping location problem

Armin Lüer-Villagra, Vladimir Marianov, H. A. Eiselt, Gonzalo Méndez-Vogel

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)

Abstract

This paper extends the follower's retail store location problem of Marianov et al. (2018) to include the leader's decisions. The leader locates its stores knowing that a follower will enter the market later offering a different product. Both maximize their markets given that customers can purchase none, one or two non-essential products on the same trip. The paper determines the best locations for a first and a second entrants through exact and approximated procedures. It turns out that, by locating with foresight, a first entrant can increase the total business in an area for himself and subsequent entrants. We solve the binary programming bi-level resulting problem for small instances by adapting an ad-hoc procedure. Furthermore, a new bi-level reactive GRASP procedure finds solutions for instances of up to 100 nodes in under 3,600 s of CPU time.

Original languageEnglish
Pages (from-to)470-481
Number of pages12
JournalEuropean Journal of Operational Research
Volume302
Issue number2
DOIs
Publication statusPublished - 16 Oct 2022

Keywords

  • Consumer choice
  • Leader's problem
  • Location
  • Multipurpose shopping

ASJC Scopus subject areas

  • General Computer Science
  • Modelling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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